Why You Need Valuation Services in Order to Secure Insurance for Your Business

Why you need valuation services in order to secure insurance for your business

If you want to protect your business, you need to make sure that it is insured properly. This is why you need valuation services in order to secure insurance for your business. Professional valuation services can enlighten you to with regard to how much your business, as well as its assets, is worth. With this knowledge you will be able to get the correct insurance for your business.

Every valuation company will be home to a few valuers. These valuer consultants should be able to give you an accurate valuation of your business or company. Many valuation companies focus on both corporate and industrial sectors, regardless of what business you own, they should be able to provide you with the knowledge and expertise that you require. Your business is an investment – which is why it is extremely important for you to insure it properly. If you were to encounter theft or damage of any description, you will want to make sure that your business insurance will cover you. If you have owned a business for many years, it may be time to schedule another valuation. Your assets and your business can decrease and increase over time and although you may believe that your business insurance is accurate, you may be mistaken.

Accurate valuation information is extremely important. This information should be captured in a report that states, in detail, exactly what your business or company is worth. You will then be able to get in contact with your insurance company and make the necessary adjustments to your business insurance. Knowledge is power, and the more that you know with regard to the inner workings of your business, the better – which is why it is important to get valuations done regularly. If you need to make sure that your business insurance is covering all of your assets, you should enlist the professional services of a valuation company today.

Why is it important to do valuations regularly?

Apart from insurance purposes, it is important to do valuations regularly for other reasons. One of these reasons is due to tax purposes. As much as you need to make sure that your insurance is up to date, you also need to make sure that you can account for everything within your business. Were you to get audited, you would need to provide as much information as possible. When you get a valuation, you will be provided with the following information:

  • Open Market/Fair Value – disposal/acquisition of assets/ asset finance
  • Forced Sale Value – auction sale values
  • Residual Values – for accounting purposes
  • Remaining Lives – for accounting/depreciation purposes
  • Depreciated Replacement Value – for accounting and balance sheet purposes
  • Existing Use Value – transfer of assets in a going concern business.

With all of this information at your fingertips, you will be prepared for any situation.

The Number 1 Secret of Business Survival

In the course of day-to-day business operations, you’re dealing with things like keeping the cash flow coming in, keeping your employees and customers happy, running ads to bring in new customers and new business from your existing customers — things you do daily and in the moment. But your ultimate goal is survival; you want your business to last. And the odds are against you.

The percentage of businesses that fail within a short time is ridiculously high. Many don’t even make it through their first year, and if a business makes it to five years, that’s really something. It’s got a good chance of continuing indefinitely at that point. And a five-year business venture really isn’t that long, considering how time flies.

All the things you do, including good advertising, should work toward business survival. The #1 secret of achieving this is flexibility. Inflexibility — brittleness, if you will — is often our undoing. So while focusing on survival as your ultimate goal, be willing to adopt a flexible strategy and use tactics that come to hand. Try things out of the ordinary to avoid being shot out of the water by market forces. Adaptability to any environment will save you when things are looking bleak.

Businesses that can’t adapt just die. You could be outplayed in your marketplace by those who are hungrier or who adjust to marketplace changes better than you do. Maybe you’re using old methods, or you react to change like Henry Ford, who wasn’t willing to adjust to the fact that people wanted cars in other colors than black. (Obviously, he eventually changed his mind about that). You have to be flexible in your business, and you have to be willing to do things that move your business forward. That means being able to change, grow and adapt as you focus on your customers. When you focus on your customers, you’re able to more accurately give them what they want and provide better service.

That, in turn, helps you grow your business. When you get right down to it, flexibility is about finding out what the customers want and then discovering creative ways to give it to them. Rigidity will kill you in the end. You have to give them what they want, not what you want — and you have constantly keep yourself visible to them.

Here’s an example of how rigidity can kill a business. My mentor once tried to help an excellent printer attract more business, because he was moaning about not making enough money. When Russ gave him the solution — to market himself widely and effectively using some simple, cheap tactics — he looked at Russ and said, “I’ve got a sign out front. They know where I am. If they want printing, they can find me.” Russ argued that his sign was barely visible and his shop was tucked in the back of a strip mall, but the printer was too inflexible to change and soon went under.

I’ve met people all over the country with similar attitudes. What it really comes down to is this: are you willing to do what you need to do to get more business? Are you willing to do the one thing that many people in business don’t want to do? That one thing is thinking about their customers first. Not what they want, but what the customers want.

Many people get so entwined in operating their businesses that they never work on their business; they work in it. You have to be flexible. You can’t decide that people will come to you. Some people have been foolishly led to believe this by that old saying, “Build a better mousetrap and people will beat a path to your door.” Well, folks, people have to know about the mousetrap before they can beat that path to your door.

I believe Benjamin Franklin said that, and admittedly, he was a brilliant man. But he was living in small world where the word got out quickly about anything, and maybe people would beat a path to your door if you had a new product they wanted. But that doesn’t work anymore in today’s complex business world. We can’t expect people just to come to us; we have to go to them with our message.

Another of my business mentors once told me something that I believe in fully, and would now like to share with you: he said that you have to work on yourself harder than you work on your business. Running a business is a tough road, much more challenging than just punching a time clock, putting in your 40 or 50 hours, and going home. You have the weight of the world on your shoulders. There are great benefits to being in business, don’t get me wrong; I love it, and I’m willing to bet that you do too. But you do have all kinds of tremendous pressures, obligations, responsibilities, commitments, setbacks and adversities to deal with. Whenever you solve one problem, a new one pops up. It just never ends.

But it helps to constantly work on yourself at least as hard as you work on your business. Keep your attitude strong. Continue to face all the things that you have to face head-on, and keep grappling with them. Don’t let things wear you down; bend rather than break. That’s what flexibility is all about.

In the building where I do all my creative work, I have a big, thick piece of leather hanging on my wall. I keep that leather there to remind myself that you can take a sledgehammer to the hardest rock you can find, and it doesn’t take much to smash that rock into a million pieces. Even a diamond will break if treated that way. But you can take that piece of leather and beat the crap out of it with a sledgehammer, and barely even do any damage to it. You have to be more like the leather than the rock; flexible and pliable, willing to take a licking and keep on moving forward.

At Last, Find Out How to Get Help With The Right Home Business Model

Establishing your home based business can seem a daunting task. But it is such an important part business ownership that you may need to source outside help when preparing your business plan.

There is an abundance of resources available to help you, and a great many experts who can work with you to create a plan for a fee, but before you hand over cash to a business coach, accountant, lawyer etc, you should first consider paying a visit to your local Small Business Association (SBA).

SBA’s are wonderful. They have a number of free services on offer and can give you advice and guidance. Many have courses you can take (for a fee) to get you started. Here in Australia we also have government funding that provides people access to business mentoring and small business management qualifications.

SBA’s are independent of the federal government but usually linked to state government. They are dedicated to the development of small business sectors which is typically a portfolio of the state government.

Their work involves championing for small business, developing programs to meet the needs of small business owners and strengthening relationships between public and private sectors. In essence they help start, build and grow businesses.

Small businesses are critical to any countries economic strength and typically make up the bulk of “actually” businesses in operation. There are much fewer larger and corporate businesses in existence.

The SBA have specialists who are well trained in writing up and creating home business models. Successfully written home business models can mean the difference in making or breaking your business.

You can expect help in the following areas:

  • Planning: SBA provide assistance in creating your business plan which is a document that describes your business, its aims, strategies, target market and financial forecasts. It’s the blueprint to your business’s future.
  • Marketing: researching your market and creating a plan.
  • Insurance: Sourcing insurance options, arranging insurance and completing a risk assessment.
  • Intellectual Property (IP): This includes advice on patents, trademarks, registered designs, copyright and deciding on strategies to protect your IP.
  • Premises and site: Advice on locating your business at home (yes you do actually need to know what the laws are in your local area), leasing or buying a commercial property.
  • Taxation: Tax and your business structure, registering for tax, obligations, record keeping, deductions and concessions.

Many SBA’s also have networking opportunities and hold workshops, presentations, seminars etc so you can get to know other business owners who are in the same position as you. This will help you to share knowledge and build connections.